The new administration in Cross River State has cancelled the tripartite coordination agreement between it and two other companies on the stateowned carrier, Cally Air aircraft.
The government has appointment of Melers Global Resources Limited as the lease manager for the state’s Boeing 737-300 with the registration number 5N-BYQ.
A document dated June 21, 2023, with the reference number: SSG/GAO/102/VOL.V1/221 signed by Professor OwanEnoh, the Secretary to the State Government and obtained by Safealtitude.com, revealed the other two contracting firms as Harrier Global Services Limited and Aero Contractors Company.
However, the State Government did not provide reasons for the cancellation of the contract but there had been some disagreements between the immediate past governor, Professor Ben Ayade and the incumbent governor, Senator BasseyOtu on the aircraft.
The document read in part “His Excellency, Senator Prince Bassey Edet Otu has approved the immediat cancellation of the tripartite coordination agreement between Cross River State, Harrier Global Services Limited and Aero Contractors Company.
“Consequently, the governor has approved the appointment of Melers Global Resources Limited as the Lease Manager for Cross River. The appointment takes effect from June 21. 2023.”
The former governor had wanted to concession the airline to a private firm, before his tenure elapsed on May 29, 2023, but the then governor-elect (now the state governor) opposed the idea.
Aero Contractors managed the aircraft since inception in 2021 when the state government brought it with a plan to add two more aircraft to it for the commencement of scheduled operations.
While the former governor wanted the aircraft to be brought to Calabar for commissioning and eventual “concessioning” exercise, it was learnt that the incumbent suspected foul play in the entire arrangement.
The former governor who had also earlier in the year listed some of the state’s assets to be concessioned to private firms and included Cally Air as one of such assets, it was however alleged that the former governor wanted to concession the aircraft to its consultant and asset manager, IRS Airlines Limited.
Consequently, Aero Contractors, which has hitherto been operating and managing the aircraft since it signed a Memorandum of Understanding (MoU) with the State Government on April 30, 2021 for its operations and until recently, is said to be reluctant to release the aircraft to the State Government over an alleged breach of agreement by the government.
The state government owed Aero Contractors over N900 million for services rendered to it on the operations and maintenance of Cally Air for over 24 months.
The MoUwas signed among Cross River State government, IRS Airlines Limited and Aero Contractors for the operation, commercial profit and maintenance of two Boeing 737 aircraft.
In the MoU signed by the parties, the Cross River State Government, acquired two aircraft; 5N-BYQ, 5N-GRS and selected IRS Airlines Limited as its consultant and asset manager, while Aero Contractors was designated as the operator and expected to provide licences, permits and certificates necessary for the airline to operate a passenger transport aircraft.
The B737-300 with the registration number: 5N-BYQ is still parked at the Aero Contractors hangar, while the other B737-300 with the registration number: 5N-GRS is at the graveyard of the Murtala Muhammed Airport (MMA), Lagos due to its non-airworthiness.
In the mid-May 2023, representatives of Cross River State Government, led by Jake Ottu Enyia and Mr Udiba Effiong Udiba, Commissioners for Aviation and Asset Management and Recovery, respectively, held a meeting with the management of Aero Contractors management on the possibility of returning the aircraft for concessioning.
The Aero Contractors management agreed to the deal, but raised concerns over the N900 million debts owed by the government.